I was curious to know what are the costs involved in owning a MacDonald's franchise and as usual, I go to Mr Google, my good and trusted friend, to find out the information.
Source of information from franchisehow.com
How Much Does a McDonald’s Franchise Cost?
Based on the McDonald’s Franchise Disclosure Document, you should have a total investment starting at $1,314,500. It can go upwards to $2,306,500. You’ll also have to pay a franchising fee of $45,000.
According to McDonald’s, they advise you have at least $500,000 non-borrowed personal resources to qualify for a franchise. Plus, McDonald’s requires you to pay an initial down payment of 40% (of total cost) for a new location or 25% (of total cost) for an existing location.
Below is the table that breaks down the initial investment costs.
Initial Cost Breakdown
|Name of Fee||Low||High|
|Initial Franchise Fee||$0||$45,000|
|Real Estate and Building – 3 months’ rent||Base Rent: $0Percentage Rent: 0%||Base Rent: $229,000Percentage Rent: 28%|
|Signs, Seating, Equipment, and Décor||$325,000||$1,550,000|
|Miscellaneous Opening Expenses||$46,500||$56,500|
|Travel and Living Expenses while Training||$3,000||$36,000|
|Additional Funds – 3 months||$80,000||$355,000|
Compared to my Jeunesse Global network marketing business, a very small one-time investment of less than $1,000 in a business builder package and my monthly purchase of about $100 if I want to earn up to six streams of income, and this monthly purchase is optional.
Let's keep it simple: if it cost $1,000,000 to invest in a MacDonald's Franchise and the earnings is $100,000 a year, it will take the franchise owner 10 years to break even - recovering his initial $1,000,000 investment, and that takes lots of patience and a very deep pocket!
Again, let's keep it simple so you can follow the figures. Compared to a network marketing business, if your initial investment is $1,000 in a business builder package and you are able to earn $200 for each person who do exactly what you do, that means if you introduce 5 people in a month, you would have break even - recovered your initial $1,000 investment in your first month.
I am writing this viral report based on 28 years of network marketing experience, and I know exactly what I'm writing about.
So if a MacDonald's frachise is definitely out of your reach, or a smaller franchise that cost $100,000 or more, a network marketing business may be your best option if you ever wanted to start a business.
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In a franchise business there are lots of regulations you must follow or they will withdraw the franchise from you. In a network marketing business we do have our ethics and company's regulations but the requirements and regulations of a franchise business can be quite overwhelming for a franchise owner, and some franchises like MacDonald's require the franchise owners to attend required courses before they become a franchise owner!
And don't forget there is the franchise fee whichLove can range from $10,000 to $45,000!
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